Insurance Companies Are Getting Ready To Cause Home Owners Breach Of Contract On Their Mortgages

reply to post by ShadellacZumbrum


Thanks for that update.

All the companies you cite are large national companies with exposure to areas with extreme weather.
May I suggest investigating a smaller, local insurer? Can't hurt.
They may not have the huge payouts as some who are in tornado alley of the hurricane states.

Originally posted by DontTreadOnMe
reply to post by ShadellacZumbrum

 

Thanks for that update.

All the companies you cite are large national companies with exposure to areas with extreme weather.
May I suggest investigating a smaller, local insurer? Can't hurt.
They may not have the huge payouts as some who are in tornado alley of the hurricane states.

This is a great point Tread. Most local insurance companies have lower rates because their reach isn't across the country so they don't get wrapped up in ALL disaters, just the ones that are local.

reply to post by kdyam


Hi Kdyam,

Thank you for the information. It has been extremely informative.

My insurance company did review my policy with me. She said that they are constantly looking at policies to ensure that the customers are getting the best deal. I know that there will be some that believe she was Blowing Sunshine up My Skirt, but they have been too good to me for me to not believe her.

She also pointed out the page that shows me the premium reductions.

Home/Auto Discount - $394
Claim Record - $281

Without those reductions my policy premium would be just over $1500/year. In that case one of the other insurance companied I listed would definitely be a better deal.

reply to post by DontTreadOnMe



Thanks for the suggestion.

We do have one of those types of insurance companies in my area. I had an extremely terrible experience with, which is what caused me to change to State Farm.

Over the years I have checked with other companies periodically to make sure that they are in line. They have always been cheaper.

I am a Big Fan of Clark Howard and he says that every so often you should check the competition to be sure that you are getting the best deal.

I can't say positively, but, if I were to find a better deal, I would about bet that my agent would do what she could to match it.

P.S.. .. I wanted to add that you always have the most Fantastic Avatars .. ..

reply to post by Zaphod58


I had somewhat of a similar situation with my brother.

He had 2 DUIs and lived at my house. My insurance company gave the option to "Exclude" him from my policy. So for 10 years, my brother was the only person on the planet excluded from driving my vehicles. But, that also kept my insurance from being cancelled.

reply to post by Deetermined


I would depend on how recent the claims are. They can only surcharge on claims filed in the past 3 years and can go back 5 to 7 for discount eligibility.

reply to post by kdyam


The agent did go back and look at the claims. The last claim I had was in 2004.

She also mentioned that They Expect that policy holders will file 1 claim every 7 years.

It looks like I am about due.



I hope Not.

reply to post by ShadellacZumbrum


Just because they give you a quote doesn't mean that's what you will pay. Negotiate with them!! Tell them you are a long term customer of State Farm and if they want to win your business and put you through the trouble of moving all your policies to them, they need to make it worth your time.

There are a ton of discounts they can give you to lower the costs. Telling them you're willing to move all your policies to them really opens up their book of savings. If they want your business they will beat what your currently paying.

I do it every year. That is why I'm still paying under $600 / year for home owners insurance alone with a $1000 deductible.

reply to post by ShadellacZumbrum



Thanks for the update! I am glad to hear you got things worked out and that you have a good agent. I have never been insured with State Farm and regardless of what some people may say I have always found them to be a reputable company with good agents. They retain a lot of their business with good agents and customer loyalty discounts.

Originally posted by LoneGunMan
reply to post by ShadellacZumbrum

 

Insurance companies are horrible. They suck money from a good share of the population in the world, then when they pay out they claim now they are going to raise everyone's rates? Nothing wrong with profits but when these companies profits are off the chart something needs to be done.

Alas they pay our leaders and they just let the pigs feed. This is what free market does without enough regulations.

Are their profits still "off the charts"? My husband was just wondering the other day, with the floods, fires the tornados and all the disasters how does the insurance company make any money with replacing so many homes and cars each year now it has been really major.

I expected rate hikes but in California we are now paying a new state fire tax of 115$ even though we pay extra insurance costs for being in forested areas.

reply to post by ShadellacZumbrum


So when you agree to a certain insurance policy with your company and pay the premiums are you not entering into a contract with THEM for the insurance coverage?

How can they change the stipulations of the contract without breaching themselves?

Sounds hokey to me. Which company do you use if you don't mind me asking?

reply to post by Char-Lee


I think it is synonymous to the Oil industry.

Every quarter they boast billions in profits and then they cry because that have to jack up the prices to meet "Supply And Demand".

I know that the insurance companies are Not losing money. This is just a way to prevent it from happening.

reply to post by mwood


The company is State Farm.

Though after I looked at my last renewal from July 22 I found a note in fine print that said they were going to increase the deductible.

You are right that something is "Hokey".

Insurance companies have the market cornered in the area of "Financial Responsibility".

I do agree that everyone should be required to have Auto insurance. You only need to have one instance when someone broadsides you and doesn't have insurance to learn that lesson.

My parents are facing a similar situation. They have lived in the same house since 1993, never late or missed a payment on their mortgage, but they did refinance once. Now their mortgage company who also insures the house wants them to replace their roof, even though their roof has no issues, no leaks, and even extra hurricane straps. They live pay check to pay check so there isn't an extra $10k-$15k they have laying around for a new roof. If they do not replace the roof the house becomes un-insurable and the mortgage does into foreclosure(or whatever legal term the crooks use). They owe less than the property alone is worth. Also considering they have now paid more than twice(almost 3 times if you count insurance) than what the original loan was for.

To me it seems like they are trying to find a reason to claim the property. They know exactly how much my parents take in a month, they know they don't have much savings, and they've pulled this before on other people. The banksters are crooks.

reply to post by Wookiep

I should have been clearer. Geico wasn't twice what I pay now, but they were substantially higher. Believe it or not, I called the AARP recommendation (Hartford) and got a quote of over $400! I told them what I was paying now ($85) and they just said "Sorry, we can't help you" and hung up.

It's no big secret... I use AllState, and I go through a local agent exclusively. I have even stopped AllState from sending me mail with corporate offers. If they ever get stupid on me, I have gotten good rates from Farmers and Progressive too. I make sure my agent knows that.

Insurance is a dog-eat-dog game... you better have an appetite for canine if you wanna make it through unscathed.

Hope this helps you save a few bucks.

TheRedneck

But if your deductible is only $436.82, then you don't have a $500 deducitable NOW so I'm not seeing what the problem is for you .....

Originally posted by ShadellacZumbrum
reply to post by Zaphod58

 

I had somewhat of a similar situation with my brother.

He had 2 DUIs and lived at my house. My insurance company gave the option to "Exclude" him from my policy. So for 10 years, my brother was the only person on the planet excluded from driving my vehicles. But, that also kept my insurance from being cancelled.

not surprised to hear this, with 2 DUIs, he's an extreme risk.

reply to post by ShadellacZumbrum

Now the minimum deductible they offer is $1000.

That actually makes a lot of sense... I was wondering why a bank would change their requirements over something that simply costs the customer more. They are changing it because their requirement isn't being offered any more.

One bunch of crooks is making another bunch of crooks change their crooked ways to comply with the new crooked ways.

I really feel sorry for anyone who is stuck right now with a mortgage or large vehicle payment. Out of debt is the way to go, so you have a little more bargaining power with the crooks. I say whether I even have homeowners insurance, what kind I have, and what I pay for it, not some banker.

TheRedneck

reply to post by babybunnies

But if your deductible is only $436.82, then you don't have a $500 deducitable NOW so I'm not seeing what the problem is for you .....

The problem is that I can Keep the $500 deductible IF I pay the extra $436.82 on my premium.

reply to post by ShadellacZumbrum


If you carry a deductible on your home insurance of $500 you're already getting ripped off. You're paying such a premium for that already, plus if you make a claim below a couple thousand dollars the amount your insurance would rise makes that senseless also.